Even though the two nations are just days away from a self-imposed deadline to strike a new trade agreement, US President Donald Trump has said that he will apply a 35% tax on Canadian exports beginning August 1.
The letter was sent at the same time that Trump threatened to impose 15% or 20% blanket tariffs on the majority of his trading partners and promised to promptly inform the European Union of a new tariff rate on its exports.
In a letter to Prime Minister Mark Carney that was shared on social media on Thursday, Trump revealed the most recent taxes on Canada. The Trump administration’s worldwide steel, aluminium, and car tariffs are hurting Canada, and the US has already placed a 25% general duty on a number of Canadian commodities.
Trump sent more than 20 letters to US trading partners this week, including South Korea, Japan, and Sri Lanka. Trump has promised to impose such duties on trading partners by August 1st, just like Canada did in its letter.
Although there is now an exemption for items that adhere to a North American Free Trade Agreement, the US has imposed a 25% tax on all Canadian imports. The most recent tariff threat may or may not affect products covered by the Canada-United States-Mexico Agreement (CUSMA).
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